Hanoi (VNA) - “What Vietnam needs today is not just growth, but an economy that is transparent, well-governed, and capable of attracting long-term capital,” said Kevin Kwon, CEO of Prudential Vietnam, at the Vietnam Future Economy Summit organized by Bloomberg Businessweek.
This remark shed light on a new growth driver for Vietnam: long-term capital and the vital role of the insurance industry.
Insurance – the ‘silent investor’ of the economy
Vietnam is entering a pivotal phase of growth, as the economy records positive signals on multiple fronts. In the third quarter of 2025, GDP is estimated to have expanded by 8.23%, while FDI reached its highest level in five years. However, sustaining long-term growth requires strengthening economic resilience and expanding stable capital flows, especially amid continued global uncertainty. Within this context, insurance has emerged as a form of “soft infrastructure” that connects finance, social security, and development.
Traditionally seen as a financial safety net for individuals and businesses, the insurance sector today is also a significant provider of long-term capital for the economy.
“As one of the big institutional investors in Vietnam, we are not merely reinvesting capital but also acting as a catalyst for sustainable growth. Specifically in the first quarter of 2025, the insurance sector reinvested 860 trillion VND into the economy, with Prudential contributing nearly 183 trillion VND. Our goal is not only to pursue growth, but to help build a more transparent, better-governed economy that attracts long-term capital for Vietnam’s future,” said Kevin Kwon, CEO of Prudential Vietnam, at the Vietnam Future Economy Summit on November 14.
According to Kevin, this flow of capital extends beyond finance. It is responsibly reinvested into infrastructure, healthcare, green energy, and education and more. All of those sectors are prioritised by the Government’s Socio-Economic Development Strategy 2021–2030, which aims for a green, circular, and balanced economy that harmonizes growth with social well-being.
Given its stability and long-term nature, insurance capital helps strengthen the financial foundation, mitigate cyclical risks, and enhance sustainable growth, all of which are critical to Vietnam’s long-term development goals.
The untapped potential of Vietnam’s insurance sector
According to “Beyond Coverage – The Social and Economic Impact of Insurance in ASEAN”, a study released by Prudential in September 2025, Vietnam’s insurance penetration currently stands at around 3% of GDP, significantly lower than the global average of 6.7%. This indicates substantial growth potential for industry.
The report projects that if insurance coverage increases by 50%, GDP per capita could rise by 4.1%. A threefold increase in coverage could raise GDP by 17.4%. These figures underline how insurance contributes to sustainable development: by helping households stay resilient against risks while channeling long-term capital into the economy. At the same time, recent policy reforms are strengthening the institutional framework for this transition.
In May 2025, Resolution No. 68-NQ/TW on private sector development officially recognized private capital as “the most important driver of the economy,” creating new opportunities for financial institutions like insurance companies to play a deeper role in national development strategies.
In the context of Vietnam and the UK’s upgrading their relationship to a Comprehensive Strategic Partnership, both sides reaffirmed their commitment to expanding cooperation, particularly in finance.
At the Vietnam Future Economy Summit, Kevin Kwon shared Prudential’s long-term vision: “Prudential is returning to its core values: rebuilding trust and strengthening the foundation for the future. I believe that when businesses do the right thing, they will attract stable capital and create inclusive growth. With the long-term perspective of the life insurance industry, we align with Vietnam’s national priorities and are ready to contribute to strategic projects such as the International Financial Centres in Ho Chi Minh City and Da Nang. Vietnam’s prosperity is also our success.”
For more than 26 years, Prudential has been not only a pioneer in life insurance but also one of Vietnam’s most important long-term investors. By investing in the future, enhancing financial literacy, and building public trust, Prudential continues to contribute to the sustainable development pursued by the Vietnamese Government./.
